Sen. Bob Duff, D-Norwalk and Rep. Bill Tong, D-Stamford, the co-chairmen of the legislative Banks Committee, just issued a news release based on recent list of top-10 scams found by the Better Business Bureau on the Hartford. They’re warning of scammers offering quick get-out-of-debt solutions.“There is no such thing as a quick fix,” Duff said in a statement. “These debt settlement companies prey upon the vulnerability of desperate homeowners, using a variety of tactics to coerce homeowners in distress to trust that their foreclosure or debt worries will disappear if they pay a fee. In 2009, we passed legislation with the support of then-Attorney General Richard Blumenthal that targeted these types of companies. Under our law, for-profit and nonprofit debt negotiation companies are required to register with the state Department of Banking, pay a license fee and post a surety bond. Consumers in Connecticut who are struggling with their debts should check that any company that promises help is properly licensed and registered before entering into any sort of arrangement.”
Tong said consumers have to be wary. “These services can entail so much more than a ‘payment plan,'” he said. ” They can involve complicated financial arrangements that directly affect our personal financial health and security, and our ability to pay our bills and honor our most basic commitments.” The 2009 law also bans up-front fees and requires written contracts.
People who think they have been victims of a debt schemes should contact Attorney General George Jepsen at 860-808-5318. To verify a debt negotiator’s license, checkt the Department of Banking online at www.ct.gov/dob or call 800-831-7225.